Confused with Tax and Expenses - Help!!!

[Bexboo1]

I am due to start childminding next week, but I know I wont be earning enough to pay any tax. Can I still claim for expenses or does that not kick in until you pay tax and then a percentage of your expenses are deducted from you tax bill???

[tulip0803]

Hi

You should still put all your expences down as the tax man may still want to see your books at some point. If you make a loss this tax year - Likely as there is only a month to go and you can put all your expences to do with setting up down - you can carry the loss forward to next year and if you make a profit and are due to pay tax you can take these expences off too IYSWIM.

[Chatterbox Childcare]

You need to keep a list of all your income and expenses, regardless of whether you make enough profit to pay tax. This is what you complete you tax return from and you may even make a loss that can be used in the future against any potential profit.

I suggest the NCMA books as they are very well laid out an self explanatory.